Dept. Should Provide Reasonable Opportunity of Hearing to Petitioner Who Was Unaware of Proceedings | HC

Case Details: Tvl. Samikannu Mariappan v. State Tax Officer - [2024] 164 taxmann.com 275 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• Mrs P. Jayalakshmi for the Petitioner.
• V. Prashanth Kiran, Government Advocate (Taxes) for the Respondent.

Facts of the Case

The petitioner was an octogenarian and he had entrusted GST compliances to a local auditor. An order in original was passed against the petitioner and he filed writ petition to challenge the same. He submitted that he was unaware of these proceedings until he received a letter.

High Court Held

The Honorable High Court noted that the tax proposal was arrived at on best judgment basis because the petitioner did not respond to the notice or appear at the personal hearing. Since the petitioner was not heard before the order was issued and he asserts that he was unaware of proceedings, the interest of justice warrants reconsideration albeit by putting the petitioner on terms.

Therefore, the Court held that the impugned order was to be set aside on condition that assessee remits 10% of disputed tax demand. The Court also directed the department to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within three months from the date of receipt of a copy of the petitioner’s reply.